EconomySausage makers in Russia hope to avoid price increases

Sausage makers in Russia hope to avoid price increases


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Meat processing plant production. archive photo

Sausage makers in Russia hope to avoid price increases due to case shortages

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MOSCOW, February 8 – RIA Novosti. There is enough meat raw material for sausage production in the Russian Federation, and since their cost depends mainly on raw materials, and not on the case, the industry hopes to avoid sharp price increases for sausage products, Ekaterina Luchkina, director of the Association of Meat Processors (ASOMP), told RIA Novosti.

In the Russian Federation, against the background of sanctions restrictions, there was a shortage of safes for the production of sausages and sausages: they are brought from China on a prepaid basis or by parallel imports, manufacturers are forced to stock up almost a year in advance, the Izvestia newspaper reported Wednesday, 25%- He wrote that it increased by 70 percent.

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“According to Rosstat, about 50 percent of the costs are the main types of raw materials and the costs of other types of raw materials and basic materials. Therefore, the cost of meat raw materials will be of great importance,” said Luchkina. He reminded that a decrease in beef production in the Russian Federation was observed in 2021 and 2022, therefore, the EEC agreed on a quota for tax-free imports of 100,000 tons of beef in 2023.

“Imports play an important role in compensating for the shortage of beef (beef – ed.) and is indeed a lever to curb domestic price growth. And as prices increase proportionally, the increase in production of other types of meat, we hope the industry will avoid sharp price increases” – ASOMP president added.

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According to him, problems with both natural and polyamide sleeves can be solved, although there are difficulties somewhere. For example, the production of natural casings from pig intestines in Russia meets only half of the industry’s needs due to narrow gauges. Large calibers (they meet 65-70% of domestic demand) are imported.

“The situation in the market has caused excitement and therefore an increase in prices. The price of the safe has increased by 20-25 percent, and in some months there have been increases of up to 30 percent in some positions. … the business world is active in alternative ways to deliver the safe to Russia through non-sanctioned countries. The risk of stopping production is not expected,” says the agency’s interlocutor, noting that Russian producers are also “ready to respond quickly to signals from the field” and meet the changing needs of meat processors.

The raw material for the production of polyamide casings are granules from oil refining: they are imported into the Russian Federation, mainly from Europe, and their own processing has not been established. “Of course, a large and reliable manufacturer of polyamide crates, located in the Rostov region – Atlantispak, helps us, but there are definitely difficulties with price fluctuations and delivery times. If raw materials continue to be imported from third countries, its cost will increase. The head of ASOMP will be higher and “The delivery time will be longer, which will be compensated by the price.”

Source: Ria

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I am Emma Sickels, a highly experienced journalist specializing in news and economy. As an author at News Unrolled, I cover the latest trends in the economic sector and provide readers with valuable insights into its complexities. My work has been featured in various media outlets such as The New York Times, USA Today, Bloomberg Businessweek and many more.


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